| The Tucson Airport Authority (TAA) Board of Directors today approved a $44.6 million operating and capital budget for Fiscal Year (FY) 2010, which begins October 1, 2009. This is a decrease of $2.9 million or 6.6% from FY2009. The budget includes a reduction in the landing fee rate at Tucson International Airport (TIA) to $1.55 per thousand pounds of landed weight from the current rate of $1.65.
Operating revenues are projected to decrease $2.9 million or 6.4%, including signatory landing fee revenue, which is expected to decrease by $0.6 million or 16%. “The budget being presented today reflects the TAA’s plan to proactively manage through the global economic recession that has had such a significant effect on airlines and airports alike. I am very proud of the TAA staff who reacted swiftly and prudently to the past year’s revenue decline and so effectively reduced operating expenses without reducing safety, security or customers’ services,” said Bonnie Allin, TAA President/CEO.
Concession revenues are projected to decrease $1 million or 6.3% due primarily to reduced passenger counts caused by continuing weakness in the economy.
Other system revenues are projected to decrease $0.8 million or 16.4%. Included in this decline are reduced fees for aircraft fueling, reflecting declines in both commercial carrier and general aviation aircraft activity.
Interest income is also expected to decrease $0.6 million, 78.1%, due to near-historically low interest rates and TAA’s emphasis on safety of principal balances.
“TAA staff recognizes the effects of the current national economic conditions on the airport and its airline partners, and is keenly aware of the relationship between airline costs and service. Significant steps have been taken to control costs while maintaining airport facilities and customer service. As a result, operating expenses are budgeted to decrease 8.5%, over $2.7 million,” explained Ms. Allin.
“Personnel expenses are decreasing by 9.1%, $1.9 million, by eliminating funding for 15 vacant full-time positions, and reducing overtime. TAA is extremely happy that we have not had to propose layoffs or furloughs in this budget,” continued Ms. Allin.
The FY2010 Capital Improvement Program, totaling approximately $13.7 million, includes a variety of projects at both TIA and Ryan Airfield. Federal and state grants are expected to cover approximately $11.2 million of the total cost of the program. The focus of the capital plan this fiscal year is on maintaining existing facilities and improving security and safety.
At TIA, projects include reconstruction of the keel section of Runway 3/21, reconstruction of several taxiways, and runway safety area drainage improvements. To ensure TAA continues to effectively prepare for future growth and development, an update of the 2004 TIA Master Plan is also scheduled in this fiscal year.
At Ryan Airfield, projects include perimeter security fencing, and roadway construction and runway safety area drainage improvements.
T-A-A
The Tucson Airport Authority, TAA, is a nonprofit entity created by State Charter in 1948. Composed of 115 community members, the Authority has a nine-member board of directors that meets monthly. TAA President/CEO Bonnie Allin oversees day-to-day operations and a staff of 300 employees. TAA manages Tucson International Airport and Ryan Airfield.
Tucson International Airport
. All major U.S. airlines, 128 daily departures and arrivals
. 2008 Passengers: 4,225,869
. Three Runways: 11L/29R; 11R/29L; 3/21
. Land Area: 8,244 acres
. Elevation: 2,641’
Ryan Airfield
. 2008 Aircraft Operations: 168,052
. Three Runways: 6R/24L, 6L/24R, 15/33
. Land Area: 1,804 acres
. Elevation: 2,417’
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